REVOLVING PROMISSORY NOTE

Exhibit 10.3

REVOLVING PROMISSORY NOTE

FOR VALUE RECEIVED, the undersigned, J. ALEXANDER’S CORPORATION , a Tennessee corporation (“Borrower”),  promises  to pay   to  the  order  of   PINNACLE NATIONAL BANK (“Lender”), in lawful currency of the United States of America, at its principal office in Nashville, Tennessee, or at such other place as the holder from time to time may designate in writing, the principal sum of FIVE MILLION AND NO/100 ($5,000,000.00) DOLLARS , or so much thereof as may be outstanding hereunder from time to time, together with interest thereon computed on the unpaid principal balance from the date of disbursement hereunder at an annual rate equal to LIBOR (as hereinafter defined) plus the Applicable Margin, as defined in the Loan Agreement (as hereinafter defined).  As used herein, “LIBOR” shall mean the London Interbank Offered Rate for one (1) month as published in The Wall Street Journal , which is the British Bankers’ Association average of interbank offered rates for dollar deposits in the London market on the date of this instrument, or if such date is not a publication date, on the next preceding publication date; provided, however, in no event shall the interest payable hereunder be less than 4.60% per annum. The interest rate shall be automatically adjusted on the tenth (10 ^th ) day of each month after execution hereof until the Maturity Date, as hereinafter defined, unless earlier accelerated, to the interest rate so calculated and in effect on such date, or the next preceding date for which the LIBOR rate is published, if no rate is published on such date.

Interest shall be calculated on the basis of a three hundred sixty (360) day year.  Principal and inter est shall be payable as follows:

(a)            Commencing on the 22 ^nd day of June, 2009, and on the same day of each succeeding month thereafter through April 22, 2012, monthly payments of interest only shall be due and payable.

(b)            The entire unpaid principal and all accrued interest and other charges shall be due and payable on May 22, 2012 (the “Maturity Date”).

The indebtedness evidenced hereby, and all extensions, modifications and renewals thereof, is secured by an Assignment and Security Agreement of even date herewith, and certain additional security documents (the “Security Instruments”).

The whole of the principal sum and, to the extent permitted by law, any accrued interest, shall bear, after default or maturity, interest at the lesser of (i) the highest lawful rate then in effect pursuant to applicable law, or (ii) the rate that is four percentage points (4%) in excess of the LIBOR, as it varies from time to time.

Sums shall be advanced hereunder subject to, and in accordance with, the conditions and other requirements contained in the Loan Agreement of even date herewith exe